MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  July 19, 2017 (REPORT 29)                          

MIDWEST CHEESE:                                                  

Central cheese contacts suggest milk production is easing back a bit, but there is still 
plenty of milk to be had for cheese vats. A few contacts say spot loads of milk are 
available at $1.50 to $3.50 under Class. Cheese plant managers are running facilities at 
or near full capacity. Demand is generally following seasonal patterns. Curds and other 
ready to eat items are moving well. Sales into food service are steady to lower, ahead of 
the seasonal gear up of school and college cafeterias and the advance of the fall pizza 
season. Some manufacturers report their cheese stocks are building. In an effort to limit 
the size of their inventories, market participants have been actively offering cheese 
barrels on the CME. Demand for fresh cheese barrels has been able to provide some support 
to market prices, but there remains a large spread between block and barrel prices. The 
disparity in price, and the length to which it has lasted, is unsettling to some barrel 
cheese producers in that it makes procurement and cost management more challenging. The 
DMN National Retail Report-Dairy shows that July 14-20 Midwest ads for 8 ounce shred 
cheese have a weighted average advertised price of $2.17, 2 cents below the national 
average. Midwest prices range from $0.99-$3.00. One year ago, the national price was 
$2.19. For 8 ounce blocks, the Midwest average price is $2.02, 12 cents below the 
national average price. Midwest ads are priced from $1.67-$3.00. Last year, the national 
price was $2.19. Midwestern wholesale prices are unchanged for Swiss cuts, up $.0675 for 
process, and up $.0825 for all other types. This week, a cooperative export assistance 
program accepted requests for 1.373 million pounds (623 metric tons) of cheese. So far 
this year, the program has assisted member cooperatives who have contracts to sell 44.312 
million pounds of cheese in export markets. In CME Group trading Wednesday, barrels 
closed at $1.4850, up $0.0475 from last Wednesday and blocks closed at $1.7100, up $.0800 
from last Wednesday.


WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.5275-1.8875       
Brick And/Or Muenster 5#                   : 1.9900-2.4150       
Cheddar 40# Block                          : 1.7175-2.1125       
Monterey Jack 10#                          : 1.9650-2.1700       
Blue 5#                                    : 2.2575-3.2450       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.7900-2.7300       
Grade A Swiss Cuts 6 - 9#                  : 2.6500-2.7675       

1300CT Mike.bandli@ams.usda.gov 608-422-8592
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: http://www.ams.usda.gov/market-news/dairy
Dairy Market News database portal: http://www.marketnews.usda.gov/mnp/da-home